BARCO PROJECTION SYSTEMS (A). Worldwide Niche Marketing Harvard Business School Rev. April 25, 1996

1. What product development strategy would you recommend? Which product(s) should the company pursue? Which should phase out? BPS is threatened by Sony introduction of the 1270 projector that has a better performance and much lower price than BPS projectors. BPS could lose as much as 75% of its 1990 forecasted profits, from 30% to 60% market share loss in the graphics segments, and erosion in sales in the data segment. BPS lacks a consistent strategy for marketing and product …

…time BG700075 kHzSony's 7"YesDecember 1989 or InfocommDepending on Sony's 1270 price and launching time BG80090 kHz (at least)Sony's 8"YesApril 1990Skimming price is considered to reamin, yet competitor's intelligence won't be neglected. EXHIBIT 4 PRICE STRATEGIES PRICE ALTERNATIVES FOR THE BD700 If Sony's 1270 is priced atThe proposed priced for the BD700 would be $20,000$18,000 $15,000$14,000 PRICE ALTERNATIVES FOR THE BG700 If Sony's 1270 is priced atThe proposed priced for the BG700 would be $20,000$20,000 $15,000$15,000 PRICE FOR THE BG800 WILL BE AT PREMIUM $24,000